Agenda item

The Committee will receive a report summarising the risk management activity in 2015 / 16 towards the achievement of the goals and objectives set out in the Council’s Risk Management Policy, and to signpost further work to be undertaken in 2016 / 17.

The Risk and Governance Manager presented, on behalf of the Service Director (Financial Services), his annual report outlining the progress made in 2015/16 towards the achievement of the goals set out in the Council’s Risk Management Policy and signposting the further work to be undertaken in 2016/17.

The report provided assurances that the significant risks to the achievement of the corporate objectives had been identified and were being appropriately managed within a comprehensive Risk Management Framework.

It was noted that:

·         The Risk Management Framework had been reviewed in 2016 and had been considered by this Committee at its meeting on the 22^nd April, 2016

·         The Corporate Assurance Group had subsumed the Risk Champion Group Terms of Reference and were now leading on the provision of assurance information that underpinned the Annual Governance Review.  It was noted that two meetings had now been held and the new arrangements were working well

·         The Risk Management Section now led on the provision of Insurance and Corporate Governance activities within the Council and benefited from an annual workplan

·         All Risk Registers, both Operational and Strategic, had been revised during 2015/16

·         The Councils Risk Profile had slightly increased and would be mitigated by direct liaison between Executive Directors and the Risk and Governance Manager

·         Options were being considered in 2016/17, as part of wider financial savings initiatives for the replacement of or alternative to the current Risk Management Database

·         The revised Annual Governance Review for 2014/15 had been completed and the subsequent Annual Governance Statement had been signed by the Leader and Chief Executive in 2015

Specific reference was made to the following:

·         In response to detailed questioning, the Risk and Governance Manager outlined the issues that had let to the Risk Champion Group not meeting during 2015/16 and to the rationale for the revision of the Terms of Reference for the refreshed Corporate Assurance Group which now  included the terms of reference of the Risk Champion Group

·         It was noted that new performance indicators were being developed for 2016/17 following the decision not to participate in the Association of Local Authority Risk Management and CIPFA Benchmarking Club for Risk Management.  The implications of this and the potential risks involved were discussed within the context of the Local Audit and Accountability Act 2014 and the need to appoint an external auditor for 2018/19 and beyond.  The Risk and Governance Manager commented that Risk Management did not lend itself to quantitate benchmarking as, because of the differing nature of Local Authorities, it was difficult to compare to other public sector organisations.  The Local Authority would, however, ensure that there was no impact on the ability to measure performance

·         It was noted that the External Auditors (KPMG) had submitted a report to the Authority indicating that Risk Management procedures and processes in place gave the Authority appropriate assurance.  A copy of this report could be provided for members of the Committee

·         The Risk and Governance Manager responded to queries with regard to the loss of the Risk Improvement Fund and to other initiatives explored by the Service to investigate alternative funding streams to fund risk improvement opportunities/initiatives 

RESOLVED:

(i)           That the Risk Management Annual Report for 2015/16 and the assurances contained therein be received and noted as part of the overall consideration of the control framework for the purposes of the Annual Governance Statement; and

(ii)          That periodic reports be presented to the Committee during the year to monitor the progress in achieving the actions identified for 2016/17.